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With CoinMarketBook, you can evaluate cryptocurrencies by a different metric: "buy support". Buy support is the sum of buy orders in USD equivalent from top 20

With CoinMarketBook, you can evaluate cryptocurrencies by a different metric: "buy support". Buy support is the sum of buy orders in USD equivalent from top 20 exchanges (planning to include more in future). It shows the actual amount that people want to buy. One might say that it's easy to place a large buy order at very low price & increase buy support artificially. However, because of low price, the increase will be negligible. What do you think? Tell us in comments.

gokhan 8y ago
So do you suggest that buy (and sell) orders on Bitfinex, for example, are genuine and there's no wash trading, no other tricks to make people believe market will go one way or another? LOL.
- deleted 8y ago
  [deleted]
- DenGorbachev 8y ago
  Real wash trading happens without orders. As for manipulative orders - you're right, they flash in the orderbook on and off. However, when I needed to exit, I actually filled a couple of them - so they were real.
codetrotter 8y ago
Back in 2017 I traded a bit in cryptocurrencies. I noticed back then that a lot of buy and sell orders were being canceled. My assumption is that a lot of that was being done by bots that were either arbitraging, or trying to manipulate the market into putting orders at certain prices. Based on that I am a bit skeptical towards trusting buy and sell orders as showing what amounts and prices people actually want to buy and sell at. I would like to see someone gather and analyze data to show orders placed vs orders retracted and orders filled. But even the insight gained from that could be of little or limited use.
- DenGorbachev 8y ago
  Yes, orders are being placed and cancelled all the time, but it mostly happens around bid / ask (and you're correct - this activity is generated by arbitrage bots). The metric is useful for comparison - since the arbitrage bots work on all altcoins, their activity is included in the metric for all altcoins.

gokhan 8y ago

So do you suggest that buy (and sell) orders on Bitfinex, for example, are genuine and there's no wash trading, no other tricks to make people believe market will go one way or another? LOL.

deleted 8y ago
[deleted]
DenGorbachev 8y ago
Real wash trading happens without orders. As for manipulative orders - you're right, they flash in the orderbook on and off. However, when I needed to exit, I actually filled a couple of them - so they were real.

codetrotter 8y ago

Back in 2017 I traded a bit in cryptocurrencies. I noticed back then that a lot of buy and sell orders were being canceled. My assumption is that a lot of that was being done by bots that were either arbitraging, or trying to manipulate the market into putting orders at certain prices. Based on that I am a bit skeptical towards trusting buy and sell orders as showing what amounts and prices people actually want to buy and sell at. I would like to see someone gather and analyze data to show orders placed vs orders retracted and orders filled. But even the insight gained from that could be of little or limited use.

DenGorbachev 8y ago
Yes, orders are being placed and cancelled all the time, but it mostly happens around bid / ask (and you're correct - this activity is generated by arbitrage bots). The metric is useful for comparison - since the arbitrage bots work on all altcoins, their activity is included in the metric for all altcoins.